Here Are The Three Key Positives Why Hyundai Motor Is A 'Buy' For Yes Securities Post Q1 Results

Yes Securities retains Buy, given its strong parentage for new technology, superior financial metrics, relatively premium brand, and better aligned to industry trends.

Hyundai Motor India Q1 FY26 reported operational beat to brokerage/street estimates, led by better-than-expected gross margins, leading to reported Ebitda margins at 13.3% vs our/street est of 12.2%.  (Image source: Hyundai Motor India)

Hyundai Motor India Ltd. has a strong potential for growth given the strong SUV preference among the consumers, robust multi-powertrain models in the product pipeline and the premium features.

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Yes Securities Report

Healthy earnings, return ratios, and FCF among key positives -

Hyundai Motor India Ltd. has a strong potential for growth given the strong SUV preference among the consumers, robust multi-powertrain models in the product pipeline and the premium features.

All these factors are estimated to drive healthy volumes /revenue / Ebitda/Adj.PAT CAGR of ~8%/10.8%/12.6%/10.8% over FY25-28E.

We expect healthy free cash flow generation of Rs 60 billion in FY26-27E, implying FCF yield of 2-2.5%, which is attractive.

Management indicated domestic volumes continued to be challenging and expected to remain so as near-term sentiments remain subdued while expect a recovery led by favorable monsoon, festive, interest rate cut, tax relief, and pay commission benefits.

Hyndai Motor to focus on product portfolio and network expansion. Rural continues to do well with its contribution increased to 22.6% in Q1 FY26 (vs 19.9% YoY and 20.9% in FY25).

Exports on the other hand, to maintain the positive momentum across geographies with strong growth witnessed in Africa +28%, Mexico +14% in 1QFY26 YoY. Overall, 6-7% volume guidance maintained for exports.

Click on the attachment to read the full report:

Yes Securities Hyundai Motor India Q1FY26.pdf
Read Document

Also Read: Hyundai Motor Q1 Results: Profit Falls Over 7%, Margin Shrinks

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Watch LIVE TV, Get Stock Market Updates, Top Business, IPO and Latest News on NDTV Profit.
GET REGULAR UPDATES